Evidence of deflation

Some posts back, I have speculated whether the behavior in the price of gold bullion might not be evidence of deflation. In deflation, the purchasing power of the currency is supposed to increase thus you should be able to buy more goods with the same amount of money. But in the recent past, most major currencies have been either range bound or have lost purchasing power; most currencies but not gold. This lead me to speculate whether gold might not be reclaiming its role as currency of last resort.

So I went looking for evidence of how gold has fared vis a vis consumer goods, health care, gasoline, food staples and such. You can see the result on page 6 on the link below. I grant you that in creating the charts below I am using stock market indexes which may not be absolutely accurate in an academic sense. Nonetheless, the indexes represent the profit reality and potential of the underlying industries. Hey! I do what I can with the tools at my disposal… LOL